Kothari Petrochemicals Ltd (KPL), India’s leading producer of polyisobutylene (PIB), has announced plans to purchase land in Andhra Pradesh for Rs 74 crore to support future expansion initiatives. The company’s Board approved the acquisition, marking a strategic step towards long-term growth.

In its financial report for Q2 FY24, KPL posted a profit after tax (PAT) of Rs 16.33 crore, down from Rs 18.54 crore in the same period last year, attributed to changes in the raw material mix. However, revenue from operations rose to Rs 180.59 crore, an increase from Rs 161.55 crore in Q2 FY23, according to a stock exchange filing. For the first half of FY24, PAT grew slightly to Rs 35.69 crore compared to Rs 34.20 crore in the previous year.

KPL, a Rs 603 crore company, holds a significant market position as India’s sole manufacturer of PIB, meeting around 91% of the country’s demand for conventional PIB. In FY24, KPL saw a 15% rise in domestic PIB consumption, with its Manali, Chennai facility producing 40,782 tonnes, up from 32,640 tonnes in FY23.

PIB, a versatile polymer derived from isobutylene, has widespread applications across industries including automotive, lubricants, adhesives, and cosmetics.

KPL sources raw materials from CPCL and Reliance Industries Ltd (RIL) to produce various grades of PIB used in lube oils, plastics, paints, and rubber.